student loan default
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Student loan default high
Keeping up with student-loan payments is not a priority for about one-quarter of the students who borrow from the federal government to fund their education.
About $2.6 billion in federal student loans is currently in default, said Heather Hamilton, spokeswoman for the Canada Student Loans program.
The default rate was just over 25% for 2004-05, she added.
That doesnt necessarily mean (the students) have walked away from it, it means theyre late, said Hamilton.
A loan that is 270 days past due is in default. .
More student loan default info
Students pressed by debt burden
According to a student loan official, about 30 per cent of recipients in the old student-loan scheme have defaulted because they remained unemployed or were earning too little to meet repayments.
Student-loan fund manager Prempracha Supasamout said the scheme - available to university students from low-income families until last year - approved 2.5 million applications totalling Bt216 billion. Many recipients are not yet required to start making repayments.
However, of those who were, only 70 per cent were doing so.
Prempracha's office commissioned Chulalongkorn University to study why the borrowers could not get jobs, or were in employment that paid below the Bt4,700-a-month repayment threshold. Those earning below that figure are not required to make repayments.